Macquarie Renaissance Fund Buys Stake in Russian Rail Co.

Macquarie Renaissance Infrastructure Fund, a Russia-focused private equity fund, has paid $125 million for a 16% stake in private leasing company Brunswick Rail, Reuters reported. The deal combined an undisclosed amount of equity and debt, and is part of a planned $500 million fundraising goal for Brunswick Rail. Macquarie Renaissance is a joint venture between Australia’s Macquarie Group and Russia’s Renaissance Capital.

(Reuters) – A Russian-focused infrastructure fund backed by Macquarie struck its first deal, agreeing to invest $125 million in Brunswick Rail, which it said was Russia’s largest private leasing company for rail rolling stock.

The investment, in equity and mezzanine debt with conversion rights, gives the Macquarie Renaissance Infrastructure Fund (MRIF) an initial 16 percent stake and a board position, the fund said in a statement on Thursday.

MRIF’s chief executive, Andrew Cowley, said: “The rail industry is the backbone of Russia’s transport infrastructure accounting for around 85 percent of total freight transport in Russia, and playing an essential role in its economic development.”

The deal was part of a $500 million capital raising by Brunswick Rail, which owns more than 12,000 rail cars.

Macquarie Renaissance is a joint venture between Australia’s Macquarie Group (MQG.AX) and Russia’s Renaissance Capital.

MRIF says it is the first infrastructure fund to focus on Russia and the Commonwealth of Independent States (CIS) region. Its investors include state development bank Vnesheconombank, the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and a unit of Kazakhstan’s sovereign wealth fund. (Reporting by Quentin Webb; editing by Kirstin Ridley)